How Can India Enhance Exports to Russia to Achieve Trade Balance?
Click to start listening
Synopsis
India and Russia are on the verge of enhancing their trade relationship, with Commerce Minister Piyush Goyal emphasizing the need for diversity and balance in their trade dealings. With a target of $100 billion in bilateral trade by 2030, both nations have significant opportunities ahead.
Key Takeaways
- India and Russia must diversify their trade basket for better balance.
- Bilateral trade is nearing $70 billion, with a target of $100 billion by 2030.
- Key sectors for Indian exports include agriculture and pharmaceuticals.
- Engineering goods make up the top export from India to Russia.
- India is enhancing its export efforts amid changing global trade dynamics.
New Delhi, Dec 4 (NationPress) Commerce and Industry Minister Piyush Goyal stated on Thursday that India and Russia should collaborate to achieve greater diversity and equilibrium in their trade portfolio, emphasizing the significant potential in their economic partnership. In his speech at the India-Russia Business Forum, Goyal remarked: "Bilateral trade between our nations is nearing $70 billion, but we cannot be complacent. We must strive for growth and balance."
He pointed out the considerable untapped potential for Indian exporters in sectors like automobiles, electronics, heavy machinery, textiles, and food products, as both countries aim to minimize trade barriers and broaden business avenues.
"I am confident that we will tackle the trade imbalance soon and collaboratively work to eliminate any trade barriers, creating favorable conditions for increased business opportunities in both nations," he stated.
Goyal added, "We need to enhance diversity in our trade basket. It is vital to achieve a balanced exchange between Russia and India."
He also mentioned that the India-Russia partnership is long-standing and has shown resilience through decades of steadfast solidarity, navigating the uncertainties of an evolving global landscape.
Maxim Oreshkin, Deputy Chief of Staff of Russia's Presidential Executive Office, highlighted that India's contribution to Russia's imports is below 2 percent, which needs to increase for a more balanced trade relationship. He identified six key sectors where India can enhance exports to Russia: agriculture, pharmaceuticals, telecom equipment, industrial components, and human resources.
Merchandise trade between the two countries reached $68.7 billion in FY25, but Indian exports to Russia were under $5 billion, while imports approached $64 billion, primarily driven by oil imports. Both nations have set a target of achieving $100 billion in bilateral trade by 2030.
India's top exports to Russia in FY25 included engineering goods worth $1.3 billion, followed by electronic goods at $862.5 million and drugs and pharmaceuticals valued at $577.2 million. Additional significant exports included organic and inorganic chemicals, marine products, and ready-made garments.
Among India's major imports from Russia in FY25 were crude oil near $57 billion, animal and vegetable fats and oils at $2.4 billion, fertilizers at $1.8 billion, and pearls, precious, and semi-precious stones valued at $433.93 million.
India is intensifying its efforts to diversify its exports, particularly in response to the recent surge in U.S. tariffs imposed by the Trump administration, and is currently negotiating a free trade agreement with the Eurasian Economic Union (EAEU).
Point of View
It's crucial to recognize the strategic importance of India's efforts to diversify its export portfolio, particularly in light of its historical partnership with Russia. The focus on enhancing bilateral trade not only strengthens economic ties but also provides numerous opportunities for Indian businesses.
NationPress
04/12/2025
Frequently Asked Questions
What sectors can India export to Russia?
India can enhance exports to Russia in agriculture, pharmaceuticals, telecom equipment, industrial components, and human resources.
What is the target for India-Russia bilateral trade by 2030?
The target for bilateral trade between India and Russia is set at $100 billion by 2030.
What was the merchandise trade value between India and Russia in FY25?
Merchandise trade between India and Russia reached $68.7 billion in FY25.
What are the major imports from Russia to India?
Major imports from Russia include crude oil, animal and vegetable fats, fertilizers, and precious stones.
How much did Indian exports to Russia amount to in FY25?
Indian exports to Russia amounted to under $5 billion in FY25.
